Market should Go back to GREEN by end of day.

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Markets are falling on Industrial production numbers not being as high as expected. But keep in mind Industrial production in the USA is now only 10% of the Economy.

The USA is a majority services economy now.

The better indicator today is the housing numbers which is giving a big indication that housing has bottomed.

The Commerce Department said home construction jumped in May by the largest amount in three months. Construction of new homes and apartments jumped 17.2 percent last month to an annual rate of 532,000 units, better than the 500,000 economists had expected. Construction had fallen in April to a record low of 454,000.

Applications for building permits, an indicator of future construction activity, rose 4 percent.

Separately, the Labor Department said wholesale prices rose less than expected in May as a large jump in gasoline prices offset a drop in food costs. The Producer Price Index increased by 0.2 percent from April, below the 0.6 percent expected by analysts.

Not all the news was upbeat. The Federal Reserve said industrial production fell a larger-than-expected 1.1 percent in May as the recession hurt demand for manufactured goods including cars, machinery and household appliances.

I'm not 100%, but it certainly looks like the market is driving deeper into the RED. Would love to see it go GREEN again, but am thinking today is a lemming kind of day...someone yelled "To the RED sea," and everyone has decided to run along and follow. What's driving this? Perhaps you are correct, "wrong data", but knowing this does not change the fact that the market has a herd mentality. Right now the herd is spooked and following the lemmings to the sea.

May 29 Market capitalization ranking date June 12 Preliminary additions and deletions to the Russell Global Index, Russell 3000® and Russell Microcap® published June 19 Updates to the list of additions and deletions June 26 Updates to the list of additions and deletions Reconstitution final after the close of the U.S. markets June 29 Final membership lists posted for the Russell Global, Russell 3000, Russell 1000®, Russell 2000®, Russell Midcap® and Russell Microcap indexes

Thanks for that info on the Russell Reconstitution and the link that is interesting information. I think you are wrong about going green, but I've been wrong several times in my life and today for that matter.

good post on the Russell rebalance... but I think you are off on this one...

Housing construction picking up means nothing!!! It is already at very low levels, and the more houses they build, the more inventory is out there, which just drives down prices (good for me, bad for existing mortgage owners)

Also, the market does not always respond to news of the day... It may be reacting today to expectations of news to be released tomorrow.